Re Alliance

RNS Number:9990P
Cambridge Antibody Tech Group PLC
22 September 2003



03/CAT/26

FOR IMMEDIATE RELEASE

07:00 BST, 02.00 EST 22 September 2003

For further information contact:
Cambridge Antibody Technology                             Weber Shandwick Square Mile (Europe)
Tel: [phone]                                 Tel: [phone]
Peter Chambre, Chief Executive Officer                    Kevin Smith
John Aston, Chief Financial Officer                       Rachel Lankester
Rowena Gardner, Director of Corporate Communications

Genzyme Corporation                                       BMC Communications/The Trout Group (USA)
Bo Piela (media) Tel: [phone]                     Tel: [phone]
Sally Curley (investors) Tel: [phone]             Brad Miles, ext 17 (media)
                                                          Brandon Lewis, ext 15 (investors)

DeFacto Communications
Richard Anderson Tel: [phone]





 CAMBRIDGE ANTIBODY TECHNOLOGY AND GENZYME CORPORATION STRENGTHEN COLLABORATION



             Genzyme making #22.9 million equity investment in CAT



Cambridge, UK and Cambridge, Mass... Cambridge Antibody Technology (LSE:CAT;
NASDAQ: CATG) and Genzyme Corporation (NASDAQ: GENZ) today announce a
significant strengthening and enhancement of their broad strategic alliance for
the development and commercialisation of human monoclonal antibodies directed
against TGFb.



Under an amended collaboration agreement, CAT, through its wholly-owned
subsidiary Aptein, has increased its commitment to the programme by agreeing to
fund fifty per cent of programme costs through to early 2006. CAT will receive
an additional credit in the formula by which profits arising from the programme
are apportioned between the parties, which significantly enhances CAT's position
with respect to its share of profits from the programme. This agreement also
amends the rights of the parties in the event of a 'change of control', giving
the party not subject to the change of control the right to purchase the other's
interest in the programme for fair value.



Separately, Genzyme is making a further equity investment in CAT of
approximately #22.9 million through a cash purchase of 4.3 million shares. This
purchase is to be effected in two tranches; an initial purchase of 1.8 million
shares and a second purchase (which requires the approval of CAT shareholders)
of 2.5 million shares.



Genzyme already holds 307,982 shares in CAT which were subscribed at the time of
entering into the initial collaboration in September 2000; following these
further subscriptions Genzyme will hold approximately 11 per cent of the
enlarged issued share capital of CAT.



Henri A Termeer, chairman and chief executive of Genzyme, said, " This
transaction reinforces our commitment to an exciting and very promising
programme and also demonstrates our commitment to CAT, whom we value highly as a
development partner. This programme is an integral component of our focus on
developing therapies for immune-mediated diseases, and we are pleased to be
strengthening our relationship with CAT."



Peter Chambre, chief executive of CAT, said  "We are delighted to strengthen our
commitment with Genzyme to the collaboration in anti TGFss antibodies.  In the
three years that CAT and Genzyme have worked together, our mutual belief in the
size of the potential opportunity has grown substantially, as has the breadth of
the programme. Today's agreement enables both companies to take advantage of
this growing opportunity. We welcome Genzyme's investment in CAT as a sign of
their commitment to the collaboration."



Genzyme and CAT (through Aptein) entered into their original strategic alliance
in September 2000. The collaboration covers all clinical indications with the
exception of ophthalmic uses.  Significant progress has been made over the last
three years. A Phase I/II clinical trial of CAT-192 (an anti-TGFb1 human
monoclonal antibody) as a potential treatment for diffuse systemic sclerosis
(scleroderma) has been completed and initial results from this clinical trial
are expected in the fourth quarter of this year.  In addition, the GC1000 series
of pan specific anti-TGFb human monoclonal antibodies has been developed and it
is expected that a first IND will be filed with the



US Food and Drug Administration in the fourth quarter of 2003 to initiate
clinical trials in idiopathic pulmonary fibrosis with GC-1008, one of this
antibody series. It is anticipated that trials of the GC1000 series in other
indications will follow.



Application will be made to the UK Listing Authority and the London Stock
Exchange for the shares to be issued to Genzyme to be admitted to the Official
List and to trading on the London Stock Exchange's market for listed securities.
It is expected that admission of the initial purchase of  1.8 million shares
will become  effective and dealings in them commence on 25 September 2003. A
circular to CAT shareholders seeking approval for the disapplication of
pre-emption rights for the second subscription of 2.5 million shares will be
posted shortly.



-ENDS-





Cambridge Antibody Technology (CAT):

*         CAT is a UK-based biotechnology company using its proprietary
technologies and capabilities in human monoclonal antibodies for drug discovery
and drug development. Based near Cambridge, England, CAT currently employs
around 290 people.

*         CAT is a leader in the discovery and development of human therapeutic
antibodies and has an advanced proprietary platform technology for rapidly
isolating human monoclonal antibodies using phage display and ribosome display
systems. CAT has extensive antibody libraries, currently incorporating more than
100 billion distinct antibodies. These libraries form the basis for the
Company's strategy to develop a portfolio of antibody-based drugs.

*         HUMIRA(R), the leading CAT-derived antibody, isolated and optimised in
collaboration with Abbott has been approved by the US Food and Drug
Administration for marketing in the US and by the European Commission for
marketing in the EU as a treatment for rheumatoid arthritis.

*         Eight further CAT-derived human therapeutic antibodies are at various
stages of clinical trials. There are five candidate therapeutic antibodies in
pre-clinical development.

*         CAT has alliances with a number of pharmaceutical and biotechnology
companies to discover, develop and commercialise human monoclonal antibody-based
products. CAT has co-development programmes with Amgen, Amrad, Elan and Genzyme.

*         CAT has also licensed its proprietary technologies to several
companies. CAT's licensees include: Abbott, Amgen, Chugai, Human Genome
Sciences, Merck & Co, Pfizer and Wyeth Research.

*        CAT is listed on the London Stock Exchange and on NASDAQ since June
2001.



Genzyme Corporation

*           Genzyme Corporation is a global biotechnology company dedicated to
making a major positive impact on the lives of people with serious diseases.

*           The company's broad product portfolio is focused on rare genetic
disorders, renal disease, immune-mediated diseases and osteoarthritis, and also
includes an industry-leading array of diagnostic products and services.

*           Genzyme's commitment to innovation continues today with research
into novel approaches to cancer, heart disease, and other areas of unmet medical
need.  Genzyme's more than 5,300 employees worldwide serve patients in more than
80 countries.






Application of the Safe Harbor of the Private Securities Litigation Reform Act
of 1995: This press release contains statements about Cambridge Antibody
Technology Group plc ("CAT") and Genzyme Corporation that are forward looking
statements. All statements other than statements of historical facts included in
this press release may be forward looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934. Such forward looking
statements include those regarding the completion of the second subscription of
CAT ordinary shares, the time at which results from the clinical trial of
CAT-192 are expected, the time at which the first IND for GC-1008 will be filed,
and the conduct of clinical trials of GC-1008 for indications other that
idiopathic pulmonary fibrosis. These forward looking statements are based on
numerous assumptions regarding the companies' present and future business
strategies and the environment in which the companies will operate in the
future. Certain factors that could cause the companies actual results,
performance or achievements to differ materially from those in the forward
looking statements include: the results of the upcoming Extraordinary General
Meeting of CAT shareholders, market conditions, CAT's ability to enter into and
maintain collaborative arrangements, success of product candidates in clinical
trials, regulatory developments,  competition and the risks and uncertainties
described in reports filed by Genzyme Corporation with the Securities and
Exchange Commission under the Securities Exchange Act of 1934, as amended,
including without limitation Exhibit 99.2 to Genzyme's 2002 Annual Report on
Form 10-K, as amended. We caution investors not to place undue reliance on the
forward looking statements contained in this press release. These statements
speak only as of the date of this press release, and we undertake no obligation
to update or revise the statements.



Genzyme is a registered trademark of Genzyme Corp. All rights reserved.








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